Does diversity mean faster home price increases?

TRD New York /
Nov.November 13, 2012 02:30 PM

It appears that the more diverse a neighborhood, the faster the real estate prices rise, according to Trulia, which took a look at the most diverse metropolitan areas and neighborhoods across the U.S., in anticipation of Thanksgiving, which many consider a celebration of American diversity.

In diverse neighborhoods, the median price per square foot rose 1.9 percent, or $157, between October 2011 and 2012, while in non-diverse neighborhoods the same metric increased only 1.2 percent, or $142, Trulia found.

“Americans, therefore, are moving toward diverse neighborhoods,” Trulia said. “However, growth in those neighborhoods could affect their diversity: if prices in diverse neighborhoods rise, lower-income residents may get priced out over time.”

New York City is the second most diverse metropolitan area in the U.S. after San Jose, Calif., Trulia said, citing data from the U.S. Census. However, only one New York City neighborhood made it into the top ten most diverse neighborhoods nationwide: Queens Village, Queens came in at No. 2.

Rounding out the most diverse metro areas were Oakland, Calif.; Houston, Texas; and Honolulu, Hawaii. The most diverse neighborhood in the nation was Irving, Texas, a town east of Dallas. Small and relatively unknown suburbs — like Dorchester, Mass., and a number of Honolulu neighborhoods — made up the bulk of the most diverse neighborhoods, Trulia noted.

The data also showed that expensive neighborhoods were generally not diverse, but that “hip” neighborhoods often were. For example, less than 65 percent of residents in Williamsburg, Chicago’s Wicker Park and Los Angeles’ Silver Lake are white, although whites make up 70 percent of the U.S. population, according to the data. [Trulia] –Guelda Voien

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

State Senator Julia Salazar and Assemblymember Harvey Epstein (Credit: Getty Images)

Pols take aim at private equity with new plan to tax mezz debt

Treasury Department watchdog is investigating the Opportunity Zone program (Credit: iStock)

Opportunity Zone investigation won’t derail developer investment, experts say

Clockwise from top left: Jim Whelan, Larry Silverstein, Helena Durst, Teodora Zobel, Jonathan Mechanic and Laurinda Martins, John Catsimatidis, Gary Barnett, Mark Weprin, Donovan Richards, Bruce Mosler, Adelaide Polsinelli and David Schechtman (Photos by Anuja Shakya)

Reflection, resentment and some remorse: Real estate’s mood at the REBNY gala

45-10 19th Avenue in Long Island City (Credit: Google Maps)

Broadway Stages plans another LIC film studio

Firefighters work to extinguish a fire as a building burns after an explosion on 2nd Avenue in March 26, 2015 (Credit: Getty Images)

$24K in rent set in motion the fatal 2015 East Village blast. Prison now looms for the landlord and contractors